CryptoQuant, a well-known on-chain analyst, recently issued a severe warning about a potential time bomb in the cryptocurrency market. Axel Adler Jr., the analyst, emphasized that the market has been uneasy due to small-scale sales of MTGOX and government assets. However, Adler pointed out that if these large-scale investors panic, the unrealized losses of Short-Term Holders (STH) whales, totaling 218,000 BTC, could bring disaster. For the latest financial and business news, visit COINTURK FINANCE.
STH whales essentially refer to large short-term investors who make significant market moves. Additionally, ETF issuers, controlled by experienced traditional market investors, hold a massive reserve of $50 billion in the ETF channel. If this substantial reserve is utilized, it could have a significant impact on market dynamics.
Market indicators: A closer look
Mignolet, an expert at CryptoQuant, pointed out a key cost level of $64,000. He noted that if the market is still in a bull market phase, short-term SOPR data suggests that the price is approaching a bottom, similar to patterns observed in September last year. This indicates that if a rapid reversal occurs to avoid the “time bomb” scenario, the market could experience a turnaround.
Key insights for investors
Valuable inferences include:
1. Monitor the unrealized losses of short-term whale holders to understand potential market impacts.
2. Keep a close eye on the reserves of ETF issuers and the behavior of traditional market investors.
3. Pay attention to short-term SOPR data to look for signs of the market bottoming out.
4. Be prepared for potential rapid market reversals and take prompt action.
Busy week in the cryptocurrency market
The upcoming week is filled with significant events. Investors will closely monitor the release of PPI and CPI data within two days, as well as statements from Federal Reserve Chairman Powell. The continued decline in inflation rates is crucial and could soon become a strong driver for risk market investors.
According to data from FedWatch, current predictions indicate rate stability in July. The recent downward revision of non-farm wage data suggests that the Federal Reserve hopes to ease employment, which could lead to two 50-basis-point cuts before the end of the year.
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Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies are highly volatile and therefore carry risks, and they should conduct their own research.